Construction appears stalled at 255 West 34th Street, a 33-story hotel tower in Midtown, Manhattan, following a $481 million loan default by former developer The Chetrit Group late last year. Designed by Stonehill Taylor Architects, the 397-foot-tall structure was planned to yield 330 hotel rooms spread across 155,594 square feet. Flintlock Construction Services is the general contractor for the project, which is located between Seventh and Eighth Avenues on the southern edge of the Garment District.
Recent photos show four more floors added to the reinforced concrete superstructure since our last update in August 2022.
255 West 34th Street. Photo by Michael Young
255 West 34th Street. Photo by Michael Young
255 West 34th Street. Photo by Michael Young
255 West 34th Street. Photo by Michael Young
255 West 34th Street. Photo by Michael Young
255 West 34th Street. Photo by Michael Young
The project has been beset by delays from the start. The Chetrit Group purchased the parcel in 2014, but construction didn’t get underway for another five years. After receiving financing from Arbor Commercial Mortgage, crews broke ground in 2019 on the hotel, which was planned to be operated by IHG Hotels & Resorts. However, the COVID-19 pandemic induced further setbacks, greatly hampering the building’s progress.
As construction rose in May of 2022, Maverick Real Estate Partners purchased $110 million of debt on the loans that matured in April, but agreed to grant Chetrit an extension on their repayment until October 30. However, Maverick has alleged that the payments were never made, and that Chetrit had additionally failed to pay property taxes for the site. Maverick then issued $19 million to cover the principal and interest on the loans, and demanded Chetrit to either finish the hotel or pay $106.4 million that Maverick claims would be necessary to complete the project.
255 West 34th Street headed to the auction block in on January 18, with Maverick taking full control of the unfinished hotel as of January 31 with a final transfer value of $104.5 million.
At this time, a revised completion date for 255 West 34th Street remains unclear.
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Cherit group are billionaires , yet they walk away and leave another blight on the nyc skyline which will eventually be a homeless shelter .
They have over the counter chill pills now you know…
Thanks